A clear indicator of the retail industry’s difficulties: The “big man” of the mobile world drastically cut 7,000 employees in just the last 3 months of the year.

Before that, right at the end of the third quarter of 2022, the number of personnel at the company reached a record of 80,231, an increase of more than 9,700 people in the first 9 months of the year.

2022 is a “low note” in many years of sublime business of Mobile World Investment Joint Stock Company (MWG). Accumulated for the whole year, MWG’s chains brought in total revenue of VND 134,722 billion, up 8.5% over the previous year and achieving 95% of the plan. However, profit after tax decreased by 16% compared to 2021, at VND 4,102 billion, only reaching 65% of the whole year plan.

Particularly in the fourth quarter, the retail giant began to record a decrease in revenue, causing the decline in profit to continue for the 5th consecutive quarter. Specifically, MWG earned a net profit of VND619 billion in the fourth quarter of 2022, down more than 60% compared to the same period in 2021 and the lowest since the third quarter of 2018.

The reason given by MWG is that the complicated developments of the economic and political situation in the world have negative impacts on production, employment, income and consumer psychology of Vietnamese people, especially in Vietnam. Quarter 4/2022. This leads to weak purchasing power for phones and electronics products in the peak season before Tet, as well as a tendency to save on food and essential consumer goods. Rising interest rates also led to a sharp increase in financial expenses in the last quarter of the year.

Also in the last quarter of 2022, the number of employees of MWG decreased significantly. At the end of the third quarter of 2022, the number of personnel at the company reached a record of 80,231 , an increase of more than 9,700 people in the first 9 months of the year.

However, by the end of 2022, this number is only 73,202, reducing more than 7,029 employees in just 3 months. For the whole year, the staff size of MWG increased by 2,730 employees.

The last three months of the year are also the period when MWG begins to suspend its expansion strategy with all chains of Mobile World, Dien May Xanh, An Khang, Bach Hoa Xanh or TopZone, even closing some operating stores. inefficient. For example, An Khang pharmacy chain, after accelerating its expansion from 178 (end of 2021) to 529 stores in September 2022, by the end of the year, the number of pharmacies will only be 500. Another test of MWG is AvaKids also reduced 7 stores (from 71 to 64), AvaSport reduced 2 stores.

To cope with the challenges and fluctuations of the economy – politics, from the end of the third quarter of 2022, MWG also said that it will review and cut out everything that is wasteful and inefficient, and at the same time find ways to Optimize operation, improve operational efficiency.